Week 15

This was the last week we met for class.  Next week is the final exam.  Our final topic of study is Resource Planning, which lies at the heart of any organization and crosses all functional areas.  A big focus of this chapter is Enterprise Resource Planning (ERP) systems.  I think it is very interesting that I'm learning about ERP systems in my Accounting Information Systems BUS 4500 class right now too.

According to our textbook in this class, "ERP systems allow an organization to view its operations as a whole rather than having to try to put together the different information pieces produced by its various functions and divisions." 

ERP systems can be very expensive, so care should be made to design the system right to begin with.  It is important to involve all departments in the planning and design processes.  A good point to start is determining the outputs wanted and needed first, then determine the required inputs, etc.  Logical and Physical security measures and controls should be established to protect the system.

The topic of EOQ surfaced again in this chapter, in conjunction with Fixed Order Quantity (FOQ).  A FOQ rule maintains the same quantity or lot size each time an order is issued.  Periodic Order Quantity (POQ) was also discussed.  A POQ rule allows a different ordering quantity for each order issued but tends to issue the order at predetermined time intervals, such as every two weeks.  The order quantity equals the amount of the item needed during the predetermined time between orders and must be large enough to prevent shortages.

My favorite activity in this chapter was using a bill of materials and other information to develop a Master Production Schedule (MPS).  The process is a lot like solving a puzzle using math skills.  I think I'm inclined to enjoy these types of activities.  It seems that many fellow classmates of mine dislike math based problems.  I on the other hand prefer them, unless they are extremely time consuming problems that provide only busy work.  It's always good to practice, but sometimes I've felt overloaded with homework in some of my previous classes.

If I ever begin a manufacturing operation, I will definitely refer back to this chapter.